European markets jump after ECB holds interest rates

Europe’s markets climbed as traders welcomed the European Central Bank’s continued dovish monetary policy stance.

The ECB confirmed plans to wind down its stimulus plan but decided not to follow central banks in the US and UK by increasing interest rates.

The Cac was up 0.91% and the German Dax increased 0.72% by the end of the session.

The FTSE 100 ended the day up 35.58 points, or 0.47%, at 7,616.38 points.

Chris Beauchamp, chief market analyst at IG, said: “While the US and UK go for more rate rises the ECB argues that no rush is necessary, with rate rises coming ‘some time’ after asset purchases end.

“This news has given new life to European markets, which have continued to make gains today after rebounding yesterday, while the euro is, unsurprisingly, taking it very badly, dropping to its lowest level in almost two years.

“This widening policy gap could be the break European markets are looking for, and certainly provides welcome relief from the negativity that has prevailed for most of the month.”

Sterling made gains against the dollar, which pulled back after a strong increase over recent weeks.

The pound increased by 0.18% against the dollar to 1.307, and fell 0.24% against the euro to 1.207.

Meanwhile, in the US stocks were mixed as the Dow Jones dipped slightly despite an increase in retail sales last month.

Shares in Twitter lifted after Tesla founder Elon Musk tabled a “full and final offer” for the social media platform, just days after declining to join the firm’s board after taking a 9.2% stake.

In company news, Wizz Air ascended on Thursday after it told shareholders it performed better than previously expected in the last three months of the year despite suspending flights to and from Ukraine, Russia and Moldova.

The Hungarian airline, which is listed in London, said that it expects to report an operating loss of around 190 million euros to 210 million euros (£158 million to £175 million) in the final quarter of its financial year.

Shares increased by 224p to 3,116p as investors cheered the optimistic update.

Technology group Halma also made gains after it bought a Canada-based underwater robot manufacturer called Deep Trekker.

The 60 million Canadian dollar (£36 million) deal will see the FTSE 100 listed company take over the business, which had 20 million dollars (£12 million) in revenue last year.

Halma closed 49p higher at 2,521p as a result.

Dunelm saw its shares rise after the home furnishings retailer said third-quarter sales rose 69% to £399 million in the three months to the end of March when compared with last year.

It finished the session up 5p at 1,065p.

The price of oil nudged lower as the Chinese authorities stood firm on their zero-Covid policy, although crude prices still remain higher for the week.

Brent crude decreased by 0.73% to 107.99 US dollars per barrel when the London markets closed.

The biggest risers on the FTSE 100 were Intercontinental Hotels Group, up 206p at 5,192p, Rolls-Royce, up 3.4p at 93.43p, IAG, up 5.18p at 145.48p, Whitbread, up 103p at 2,915p, and Landsec, up 22.4p at 770.8p.

The day’s biggest fallers were Dechra, down 262p at 3,822p, ITV, down 2.08p at 77.02p, Fresnillo, down 18.8p at 804p, Ocado, down 15p at 1,138.5p, and Coca-Cola HBC, down 16.5p at 1,583p.